Walmart Supercenters and Monopsony Power:
How a Large, Low-Wage Employer Impacts Local Labor Markets
Updated: June 2026
Abstract: I assess monopsony power exercised by Walmart Supercenters. To address endogenous entry bias, I estimate labor market effects using a stacked synthetic control approach, with the donor pool constructed from counties where local efforts successfully delayed Supercenter openings. Supercenters hired many retail workers and increased retail labor market concentration without raising average retail earnings, indicating wage-setting power. Overall local employment and earnings fell—especially among goods-producers—as Walmart displaced manufacturing demand away from local producers to its global suppliers. Subsequent minimum wage increases raised aggregate and retail employment, counter to competitive labor markets, indicating monopsony power that harmed workers.
related materials
Summary Poster (Outstanding Poster Award, 14th All California Labor Economics Conference)
Policy Brief on monopsony power in the U.S. retail sector (with The Washington Center for Equitable Growth)
Earlier version: The Washington Center for Equitable Growth Working Paper 012822